Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000
FEMA 14/2000-RB, dated
3-5-2000 [GSR 397(E), dated 3-5-2000] - In exercise of the powers conferred by section 47
of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of
India makes the following regulations in respect of the manner of receipt and
payment in foreign exchange, namely :—
(i) These Regulations may be called the
Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2000.
(ii) They shall come into effect on 1st day of
June, 2000.
In these Regulations, unless
the context requires otherwise,—
(i) ‘Act’ means the Foreign Exchange
Management Act, 1999 (42 of 1999);
(ii) ‘authorised dealer’ means a person
authorised as an authorised dealer under sub-section (1) of section 10 of the
Act;
(iii) ‘authorised bank’ means a bank, other
than an authorised dealer, authorised by the Reserve Bank to accept deposits
from persons resident outside India;
(iv) ‘FCNR/NRE account’ means an FCNR or NRE
account opened and maintained in accordance with the Foreign Exchange
Management (Deposits) Regulations, 2000;
(v) ‘Permitted currency’ means a foreign
currency which is freely convertible;
(vi) the words and expressions used but not
defined in these Regulations shall have the same meanings respectively assigned
to them in the Act.
Manner of Receipt
in Foreign Exchange.
(1) Every receipt in foreign exchange by an
authorised dealer, whether by way of remittance from a foreign country (other
than Nepal and Bhutan) or by way of reimbursement from his branch or
correspondent outside India against payment for export from India, or against
any other payment, shall be as mentioned below :
|
Group |
|
Manner of receipt of foreign exchange |
|
(1) member countries in the Asian clearing Union
(except Nepal) namely, Bangladesh, Islamic Republic of Iran, Myanmar, and Sri
Lanka |
(a) |
payment for all eligible current transactions by
debit to the Asian Clearing Union dollar account in India of a bank of the
member country in which the other party to the transaction is resident or by
credit to the Asian Clearing Union dollar account of the authorised dealer
maintained with the correspondent bank in the member country; and |
|
|
(b) |
payment in any permitted currency in all other cases |
|
(2) all countries other than those mentioned in (1) |
(a) |
payment in rupees from the account of a bank
situated in any country other than a member country of Asian Clearing Union
or Nepal or Bhutan; or |
|
|
(b) |
Payment in any permitted currency |
(2) In respect of an export from India,
payment shall be received in a currency appropriate to the place of final
destination as mentioned in the declaration Form irrespective of the country of
residence of the buyer.
Payment for
export in certain cases.
Notwithstanding anything
contained in Regulation 3, payment for export may also be received by the
exporter as under, namely :
(i) in the form of a bank draft, cheque,
pay order, foreign currency notes/travellers cheque from a buyer during his
visit to India, provided the foreign currency so received is surrendered within
the specified period to the authorised dealer of which the exporter is a
customer;
(ii) by debit to FCNR/NRE account maintained
by the buyer with an authorised dealer or an authorised bank in India;
(iii) in rupees from the credit card servicing
bank in India against the charge slip signed by the buyer where such payment is
made by the buyer through a credit card;
(iv) from a rupee account held in the name of
an Exchange House with an authorised dealer if the amount does not exceed two
lakh rupees per export transaction;
(v) in accordance with the directions issued
by the Reserve Bank to authorised dealers, where the export is covered by the
arrangement between the Central Government and the Government of a foreign
country or by the credit arrangement entered into by the Exim Bank with a
financial institution in a foreign state;
1[(vi) in the form of precious metals, i.e., gold/silver/platinum
equivalent to value of jewellery exported by Gem & Jewellery units in
Special Economic Zones and Export Oriented Units on the condition that the
sale contract provides for the same and the value is declared in the relevant
GR/SDF/PP forms.]
Manner of payment
in foreign exchange.
(1)
A
payment in foreign exchange by an authorised dealer, whether by way of
remittance from India or by way of reimbursement to his branch or correspondent
outside India (other than Nepal and Bhutan) against payment for import into
India, or against any other payment, shall be as mentioned below :
|
Group |
|
Manner of payment |
|
(1) member countries of Asian Clearing Union (except Nepal) namely,
Bangladesh, Islamic Republic of Iran, Myanmar, Pakistan and Sri Lanka |
(a) |
payment for all eligible current transactions by
credit to the Asian Clearing Union dollar account in India of a bank of the
member country in which the other party to the transaction is resident or by
debit to the Asian Clearing Union dollar account of an authorised dealer with
the correspondent bank in the other member country; and |
|
|
(b) |
payment in any permitted currency in other cases |
|
(2)
all countries other than those mentioned in (1) |
(a) |
payment in rupees to the account of a resident of
any country other than a member country of Asian Clearing Union or Nepal or
Bhutan; or |
|
|
(b) |
payment in any permitted currency. |
(2) In respect of import into India,
(a) where the goods are shipped from a member
country of Asian Clearing Union (other than Nepal) but the supplier is resident
of a country other than a member country of Asian Clearing Union, payment may
be made in a manner specified for countries in Group (2) of Regulation 5;
(b) in all other cases, payment shall be made
in a currency appropriate to the country of shipment of goods.
Manner of Payment
in certain cases.
Notwithstanding anything
contained in Regulation 5—
(1) where an import is covered by the special
arrangement between the Central Government and the Government of a foreign
state, the payment for import shall be made in accordance with the directions
issued by the Reserve Bank to authorised dealer;
(2) subject to the provisions of
sub-regulation (1), a person resident in India may make payment in foreign
exchange through an international card held by him :
Provided that—
(a) the transaction for which the payment is
so made is in conformity with the provisions of the Act, rules and regulations
made thereunder; and
(b) in the case of import for which the
payment is so made, the import is also in conformity with the provisions of the
Export-Import Policy for the time being in force.